Jubilant And Westlife

The brokerage noted that the QSR sector has been an underperformer in the last four years and the aggregate market cap of listed QSR companies has declined by 20 per cent during FY22-26.

With expectation of urban demand recovery, analysts at Motilal Oswal Financial Services said they need to see if January trends for QSR companies are sustaining.

The company had posted a consolidated profit after tax (PAT) of Rs 22.37 crore in the corresponding quarter previous fiscal, Westlife Foodworld Ltd (WFL) said in a regulatory filing

Sales uptick in dine-in and delivery channels, new products and gradual royalty hikes are positives

Despite a high base of 24-26 per cent in the June 2018 quarter (Q1FY19), analysts expect Jubilant and Westlife to report 6-8 per cent same-store sales growth (SSG) in Q1FY20

Improving operating leverage will boost profitability over next 3 years

Expectations of high same-store sales growth and improving margins led to higher investor appetite